Novant Health net income jumps to $412.8M: 6 things to know

Winston-Salem, N.C.-based Novant Health more than doubled its net income in 2016 compared to the year prior, a change primarily driven by increases in investment income and nonoperating income.


Here are six things to know about Novant's 2016 financial results.

1. The nonprofit health system reported net income of $412.8 million in fiscal year 2016, up from $191.6 million in 2015. Novant's increased net income reflects an investment income of $151.1 million last year, up from a $60 million investment loss in 2015, and a nonoperating income of $2.9 million in 2016, compared to a nonoperating expense of $6.8 million the year prior.

2. Novant saw its 2016 revenue increase more than 5 percent to $4.34 billion, up from $4.13 billion the year prior.

3. The health system also saw its operating expense rise about 5.5 percent to 4.1 billion last year, up from $3.9 billion in 2015. Novant's operating income stayed about the same year-over-year at $258 million.

4. Novant saw its number of physician visits increase 6.8 percent from 2015, while inpatient visits remained the same year-over-year.

5. The health system paid roughly $350 million of its debt in 2016. The nonprofit also recorded $204.5 million in bad debt in 2016.

6. Novant reported $400.7 million in uncompensated care for Medicare patients and $100 million in uncompensated care for Medicaid patients last year. 

Fred Hargett, CFO of Novant, said the nonprofit health system "has been taking cost out of its operations while paying down debt and managing a healthy balance sheet. As the industry continues to be pressured, Novant Health has managed itself responsibly to prepare for the uncertainty of the future." 

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